The World Cotton Situation with Outlook for 1931-32 and the Long-Time Outlook for Southern Agriculture

Excerpts from the report: The South is again suffering from low cotton prices. In mid-October prices received by farmers for cotton averaged 26 per cent below the pre-war (1910-1914) average, and cottonseed prices were 6 per cent below the pre-war level. Prices paid by farmers for things they buy at retail have gone down a little, but in comparison with prices farmers receive for cotton their decline is insignificant, and they still average almost 50 per cent higher than in the pre-war period. Undoubtedly much would be gained if farmers would plan their production in light of the fundamental development taking place in supply and demand situations rather than in the light of previously obtained prices. This would stabilize prices and incomes by avoiding periods of overproduction and reducing the effects of business depressions. In addition to the immediate situation there are certain long-time developments which may necessitate adjustments in production over a period of years and it is well to consider those problems before adjustments are forced upon us. The United States is the outstanding producer of cotton and the largest individual consumer, but 56 foreign countries regularly report production of cotton and over half the American crop is consumed in foreign countries. A review of conditions affecting the outlook for cotton, to be adequate, must be world-wide in scope. For the most part these conditions can be grouped as those affecting the quantities of cotton consumers will take at the prices they must pay, or the demand for cotton, and those affecting the availability, or the supply of cotton. Then the question of how the individual farmer can adapt his operations to these general conditions to make the most of his resources and local environment, must be considered. This requires a study of alternative opportunities and cost problems.